Long/Short Equity, Dynamic Trend Following, Option Tradnig
Contributor Since 2008
Bitcoin Investment Trust (OTC:GBTC) shares are solely invested in and deriving value from the price of Bitcoin.It is expensive ($950 as of close, Nov 3rd), but we trade it with all of the profit of Bitcoin (and little bit more) with the implementation of our Blue Line trend-signal line, and at a fraction of the risk. GBTC has no options and we do not short it. Here are the Blue Line trades since last February:
02.23.17 Buy $116. +5%
03.08.17 Sell $122
04.11.17 Buy $126 +200%
06.12.17 Sell $383
07.21.17 Buy $411 +120%
09.01.17 Sell $901
10.31.17 Buy $816 +16%
11.03.17 Open $950
That turns $1,000 into about $8,000, about +700%, since the first trade in February. All of the above signals are real time generated by our trend-signal reversal line based upon the 240 minute price bars. This is the same set-up we use in our Blue Line Trading Classic and Prime trading services. We follow GBTC as a "Special Situation" stock in the Classic service.
Since February 23, 2017, Bitcoin has risen from $1,168 to $7,395, or about 530%. Using the combination of GBTC with our trend-signal methodology GBTC has outperformed Bitcoin by about 25%. Why only the from last February? Because that's when the cryptocurrency world caught fire, and that is the measure of this trading regimen: Does it play the hot hand, garnering the gains while limiting the risk?
Here is the chart, the signals and our proprietary trend-signal line. If you are considering investing in Bitcoin via GBTC, having access to the signals as a subscriber to our Blue Line Classic Trading Service is the way to go. Considering the potential rewards, we are just about giving it away.
(1) GBTC carries a hefty premium to the underlying value of Bitcoin. Some consider it a reason to just buy Bitcoin outright, and thus save the premium. That involves opening a Bitcoin account and getting involved in the complexity of blockchains and digital wallets. No thanks, I'll pay the premium and based on trades since February, still come out ahead.
(2) While our trend-signal system will protect against a short-term, intermediate term or even a protracted decline in the value of Bitcoin, it probably would not be nimble enough to exit in time to avoid a news-driven overnight global crash. Than again, a melt-up may be just as likely in the event of a global currency crisis. In either case, don't play with so much that you are up all night checking the 24-7 Bitcoin market...although it can get addictive, especially when Bitcoin runs.
Finally, a chart of Bitcoin for the same time period featured above with the GBTC signals:
That's the pitch for trading Bitcoin as a subscriber of Blue Line Classic trading service. One stock timing model worth the price of admission to our Classic Service in and of itself. Did you take advantage of the 30 day trial yet? Get it here before the offer expires.
Disclosure: I am/we are long GBTC.